Some Thoughts on the Transformation of Current Export-oriented SMEs

張敏

摘要：Although China's export-oriented SMEs are mainly aimed at the markets in Europe and the United States， with the current weak international real economy， they are also facing severe problems of reduced orders， shrinking foreign market demand and foreign credit crisis. At the same time， China's SMEs themselves have many problems， which has led to insufficient development stamina and slow development. Therefore， SMEs should change their business philosophy and actively explore and develop the domestic market so that they can smoothly transform and upgrade.

關鍵詞： SMEs， business philosophy， transformation and upgrading

China's SMEs are important parts of the national economy. Since the reform and opening up， the state has encouraged the development of SMEs， which has prompted them to spring up and become the main force of national economic vitality. It has also brought many channels for employment. However， due to the weak economic situation of the international entity， some major developed countries in Europe and the United States and some major trading partners of SMEs in Japan have sharply reduced their demand for commodities and the international market has shrunk. In this context， the exports of China’s SME merchandise have been greatly affected. As for export-oriented SMEs that rely mainly on the export of light industrial products， the impact is particularly serious.

1. Analysis of the status quo of China's export-oriented SMEs.

The current impact of the weak international real economy on China's foreign-oriented SMEs is mainly reflected in the impact of foreign exports. Because of the high dependence of SMEs on external development， the challenges facing the crisis are also obvious， especially in the light industry of SMEs， the products of which are mainly exported， and currently face the challenge of reduced demand in foreign markets， and the credit crisis of foreign investors and the risk of capital chain security. At the same time， the domestic production costs increase and the price of labor increases， making the cost of export-oriented SMEs increases. And the decrease in foreign demand has also made their living conditions worse and worse， and the situation of corporate closures has occurred for times. Although some medium-sized enterprises have not faced bankruptcy， their profit margins have been severely squeezed， resulting in a serious production crisis. The phenomenon of production suspension and semi-discontinuation has become increasingly serious.

1.1 Due to the impact of the economic crisis in recent years， China's foreign trade market environment is severe， and the volume of foreign trade exports is decreasing year by year， followed by the increase of barriers to international trade. The United States， the European Union， Japan and other countries continue to conduct anti-dumping investigations on China's product exports， imposing high anti-dumping duties. In order to maintain higher prices of similar goods and obtain higher profits， foreign businesses switch to some developing countries such as India and Vietnam， which have comparative advantages， making it more difficult for China's SMEs to export.

1.2 Domestic economic environmental factors are also facing challenges. Since China has repeatedly lowered the export tax rebate in recent years， many export-oriented SMEs that rely on export tax rebates to obtain profits are facing the problem of survival， and it is more difficult for export-oriented SMEs to do businesses， directly affecting the profitability of export enterprises.

At the same time， due to the implementation of the new Labor Contract Law， the labor cost of export-oriented SMEs has risen， and the price of raw materials has continued to rise， making it more difficult for export-oriented SMEs to operate.

1.3 China's export-oriented SMEs have their own shortcomings. First， export-oriented SMEs are generally small in scale， and it is difficult to resist risks of economic problems. Second， there is little technology in their products and they cannot reduce the costs through mass production. Most of them are light industrial low-end products， lacking of their own brands. Third， the number of bad competition between enterprises is increasing. Inter-enterprise prices and mutual digging of talents， product design plagiarism， plagiarism often occur， and there lacks self-discipline.

2. Research on the countermeasures for the transformation and upgrading of current export-oriented SMEs.

2.1 Transforming the business philosophy of the enterprise. Due to the lack of clear long-term development plans for foreign-oriented SMEs， enterprises have the disadvantage of blind development. They may not consider the difficulties and solutions that may be encountered in the future， which is the main reason for enterprises to fall into crisis. Therefore， we must change the business philosophy of the company. We cannot blindly see that the products make money and expand production without limit. If we encounter difficulties， we will withdraw and change. We must have a long-term plan， planned production， and transform according to market rules and changes with plans.

2.2 Actively explore the domestic market and enhance the ability of enterprises to withstand the economic crisis. They cannot blindly focus on foreign markets， but to re-plan product structure. Export-oriented SMEs originally belonged to order-type production， the production of products is usually based on sales， that is， according to the amount of customer orders to arrange production. If the export is to be domestically sold， the products that are suitable for the foreign market may not be suitable for the domestic market. Therefore， it is necessary to develop new products suitable for the needs of the domestic market. The second is to build channel of services. Most export-oriented SMEs have not established a domestic marketing network in China. To develop the domestic market， channel construction is needed， so that the domestic market can be quickly opened. Third， it is necessary to establish its own marketing team. Due to the differences in different operating modes at home and abroad， a mature management team is critical to the success of export-oriented SMEs in opening up the domestic market. Enterprises must cultivate or recruit marketing talents to form a competitive management team， which can not only maintain the experience of the original overseas market， but also understand the differences in demand and competition in the domestic market.

3. Summary.

After the economic crisis， the recovery and development of the international real economy will take a long time. The export-oriented SMEs must survive this difficult period and continue to explore and develop and find a development path that suits them. Our foreign-oriented SMEs should change the business philosophy of the company， and actively explore the domestic market. We must start to deal with these two aspects， so that we can transform and upgrade. The success of SME transformation is not only related to its own development， but also to the development of the entire country's economy， related to employment and people's livelihood.

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